Hormel Foods (NYSE:HRL) Given New $25.00 Price Target at Bank of America

Key Points

• Bank of America raised its price target on Hormel Foods to $25 from $23 while keeping a neutral rating, implying about 5.1% upside from the current share price.
• Hormel recently beat quarterly expectations, reporting EPS of $0.40 versus $0.35 expected and revenue of $2.97 billion, with sales up 2.6% year over year.
• The company reaffirmed its full-year outlook, guiding for $1.43 to $1.51 in adjusted EPS for FY2026, even as some analysts remain cautious and hedge fund ownership stays substantial at about 41%.

Hormel Foods (NYSE:HRL - Get Free Report) had its target price raised by stock analysts at Bank of America from $23.00 to $25.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Bank of America's price target suggests a potential upside of 5.11% from the stock's current price.

Several other research firms also recently commented on HRL. Weiss Ratings reiterated a "sell (d+)" rating on shares of Hormel Foods in a research report on Tuesday, April 21st. Stephens lifted their target price on shares of Hormel Foods from $22.00 to $25.00 and gave the stock an "equal weight" rating in a research report on Friday. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $23.00 target price (down from $28.00) on shares of Hormel Foods in a research report on Thursday, April 9th. Finally, The Goldman Sachs Group set a $25.00 target price on shares of Hormel Foods in a research report on Thursday, May 21st. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $25.67.

Hormel Foods Price Performance

Shares of HRL traded up $0.20 during mid-day trading on Friday, reaching $23.79. The company had a trading volume of 3,432,318 shares, compared to its average volume of 4,876,032. The company's 50 day simple moving average is $21.40 and its 200 day simple moving average is $22.97. Hormel Foods has a 1-year low of $19.70 and a 1-year high of $31.86. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.37 and a current ratio of 2.66. The company has a market capitalization of $13.09 billion, a price-to-earnings ratio of 26.73, a P/E/G ratio of 2.88 and a beta of 0.33.

Hormel Foods (NYSE:HRL - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.35 by $0.05. Hormel Foods had a net margin of 4.03% and a return on equity of 9.38%. The company had revenue of $2.97 billion for the quarter, compared to the consensus estimate of $2.96 billion. During the same period last year, the company posted $0.35 EPS. The firm's quarterly revenue was up 2.6% compared to the same quarter last year. Hormel Foods has set its FY 2026 guidance at 1.430-1.510 EPS. Analysts expect that Hormel Foods will post 1.41 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of HRL. Invesco Ltd. lifted its position in shares of Hormel Foods by 66.5% in the 3rd quarter. Invesco Ltd. now owns 11,331,941 shares of the company's stock worth $280,352,000 after purchasing an additional 4,526,167 shares during the period. Norges Bank acquired a new position in shares of Hormel Foods in the 4th quarter worth approximately $85,840,000. Victory Capital Management Inc. lifted its position in shares of Hormel Foods by 297.6% in the 3rd quarter. Victory Capital Management Inc. now owns 4,198,564 shares of the company's stock worth $103,815,000 after purchasing an additional 3,142,670 shares during the period. Epoch Investment Partners Inc. acquired a new position in shares of Hormel Foods in the 1st quarter worth approximately $44,733,000. Finally, Freestone Grove Partners LP acquired a new position in shares of Hormel Foods in the 4th quarter worth approximately $43,340,000. Institutional investors and hedge funds own 40.99% of the company's stock.

Hormel Foods News Roundup

Here are the key news stories impacting Hormel Foods this week:

• Positive Sentiment: Hormel beat Q2 estimates with adjusted EPS of $0.40 versus $0.35 expected, while revenue of $2.97 billion also edged above forecasts. Hormel Foods tops quarterly estimates on strong demand for protein-rich foods
• Positive Sentiment: Management said organic sales grew and all three major segments — Retail, Foodservice, and International — posted profit growth, supporting the view that its protein-focused strategy is gaining traction. Hormel tops FQ2 estimates as protein strategy delivers results
• Positive Sentiment: Hormel reaffirmed full-year adjusted EPS guidance of $1.43 to $1.51 and net sales guidance of $12.2 billion to $12.5 billion, signaling confidence in the recovery despite portfolio changes. HORMEL FOODS REPORTS STRONG SECOND QUARTER FISCAL 2026 RESULTS
• Neutral Sentiment: Stephens raised its price target on HRL to $25 from $22, but kept an “equal weight” rating, suggesting modest upside rather than a strong bullish call. Benzinga article on Stephens price target update
• Negative Sentiment: Despite the beat, Hormel also flagged lower GAAP profit guidance tied to the sale of its whole-bird turkey business, which may limit near-term enthusiasm. Hormel Reports Lower Profit

About Hormel Foods

Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company's portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.

Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.

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